BSET Butterfly Strategy
BSET (Bassett Furniture Industries, Incorporated), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
Bassett Furniture Industries, Incorporated (BSET) is a prominent company involved in the design, manufacturing, marketing, and retail of home furnishings, serving both domestic U.S. and international markets. Its operations are segmented into three core areas: Wholesale, company-owned Retail Stores, and Logistical Services. The firm actively designs, produces, sources, sells, and distributes a wide range of furniture items through its network of corporate-owned and licensee-operated retail outlets, as well as via independent furniture retailers. Bassett also specializes in both wood and upholstered furniture production. As of November 27, 2021, the company's retail footprint included 63 directly owned stores and 34 stores run by licensees. Additionally, Bassett offers shipping and warehousing services to clients within the broader furniture industry.
BSET (Bassett Furniture Industries, Incorporated) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $170.9M, a trailing P/E of 31.25, a beta of 0.74 versus the broader market, a 52-week range of 13.17-22.26, average daily share volume of 54K, a public-listing history dating back to 1980, approximately 1K full-time employees. These structural characteristics shape how BSET stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places BSET roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BSET pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BSET?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
BSET snapshot
As of August 14, 2026, spot at $19.27, ATM IV 40.70%, IV rank 14.82%, expected move 11.67%. The butterfly on BSET below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on BSET specifically: BSET IV at 40.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a BSET butterfly, with a market-implied 1-standard-deviation move of approximately 11.67% (roughly $2.25 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BSET expiries trade a higher absolute premium for lower per-day decay. Position sizing on BSET should anchor to the underlying notional of $19.27 per share and to the trader's directional view on BSET stock.
BSET butterfly setup
The BSET butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BSET at $19.27 on that close, the first option leg uses a $18.31 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BSET chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 BSET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.31 | N/A |
| Sell 2 | Call | $19.27 | N/A |
| Buy 1 | Call | $20.23 | N/A |
BSET butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
BSET butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BSET. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use butterfly on BSET
Butterflies on BSET are pinning bets - traders use them when they expect BSET to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
BSET thesis for this butterfly
The market-implied 1-standard-deviation range for BSET extends from approximately $17.02 on the downside to $21.52 on the upside. A BSET long call butterfly is a pinning play: it pays maximum at the middle strike if BSET settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BSET IV rank near 14.82% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on BSET at 40.70%. As a Consumer Cyclical name, BSET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BSET-specific events.
BSET butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. BSET positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BSET alongside the broader basket even when BSET-specific fundamentals are unchanged. Always rebuild the position from current BSET chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BSET?
- A butterfly on BSET is the butterfly strategy applied to BSET (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With BSET stock at $19.27 on the most recent close, the strikes shown on this page are snapped to the nearest listed BSET chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BSET butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the BSET butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BSET butterfly?
- The breakeven for the BSET butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BSET market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BSET?
- Butterflies on BSET are pinning bets - traders use them when they expect BSET to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current BSET implied volatility affect this butterfly?
- BSET ATM IV is at 40.70% with IV rank near 14.82%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.